Tech startup acquiror Pluribus Technologies has closed its acquisition of e-learning tech company Kesson Group for $10 million in cash and $320,000 in shares. Recently, it also acquired social media marketing firm Social5 for $3.5 million in cash less a holdback of $345,000.
Toronto-based Pluribus was founded in 2018 to acquire companies that it claims are too risky for most strategic acquirers and private equity funds to invest in.
The TSX Venture Exchange (TSXV)-listed company also said that it helps entrepreneurs create new revenue streams and enable companies to grow within their respective markets. It began trading on the TSXV on January 19 through a reverse takeover.
Companies Pluribus acquires are provided with sales and marketing resources, strategic partnerships, and technologies including automation, self-service, and artificial intelligence.
According to Pluribus, its purchase of Kesson Group continues its push toward the e-learning industry, while the addition of Social5 marks the beginning of a “roll up of software companies in the fragmented e-commerce vertical.”
The Kesson Group is headquartered in Toronto, operating for nearly two decades. The edtech firm operates Teach Away, a recruitment and professional development platform for international educators; Klassroom, which offers teacher licensure programs; and Skooli, an online learning platform that offers tutoring options.
“We continue to identify and act on opportunities in the eLearning market with the acquisition of the Kesson Group being our sixth acquisition in the rapidly growing eLearning vertical,” said Richard Adair, CEO of Pluribus Technologies. “Kesson Group is our first acquisition focused on the K-12 education market and tenth overall since March 2019.”
Pluribus highlighted the potential to offer cross-selling opportunities from Kesson and Social5 with its other businesses to multiply customer bases. It’s other acquired companies include The Learning Network, an EdTech firm; TeleMED Diagnostic Management, a healthtech company; and e-commerce platform Powr.
Pluribus noted that Social5 targets the same market as Powr, which Pluribus acquired in July 2021, and provides both companies with a new channel for distribution.
Launched in 2012, Social5’s SaaS platform enables small-to-medium-sized businesses to manage their social media footprint through a combination of “journalism-trained talent” and proprietary technology.
Adair said that Social5 is Pluribus’ second acquisition in the e-commerce space. “Following our recent financing and go-public transaction, we remain focused on a small selection of key verticals, acquiring companies that both meet our return criteria and have an opportunity to deliver stable organic growth once we leverage the available synergies across our portfolio,” he said.